<SUBMISSION>
<ACCESSION-NUMBER>0001193125-07-073536
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20070402
<ITEMS>1.01
<ITEMS>2.02
<ITEMS>2.04
<ITEMS>3.03
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20070404
<DATE-OF-FILING-DATE-CHANGE>20070403
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DEVCON INTERNATIONAL CORP
<CIK>0000028452
<ASSIGNED-SIC>3270
<IRS-NUMBER>590671992
<STATE-OF-INCORPORATION>FL
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-07152
<FILM-NUMBER>07746427
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>595 SOUTH FEDERAL HIGHWAY
<STREET2>SUITE 500
<CITY>BOCA RATON
<STATE>FL
<ZIP>33432
<PHONE>5612087207
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>595 SOUTH FEDERAL HIGHWAY
<STREET2>SUITE 500
<CITY>BOCA RATON
<STATE>FL
<ZIP>33432
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<HTML><HEAD>
<TITLE>Current Report</TITLE>
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<HR SIZE="3" NOSHADE COLOR="#000000" ALIGN="left"> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>Washington, D.C. 20549 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 8-K </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="5"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>Pursuant to Section&nbsp;13 or 15(d) of the </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>Securities and Exchange Act of 1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>Date of Report (date of earliest event reported): April&nbsp;2, 2007 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>DEVCON INTERNATIONAL CORP. </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Exact Name of Company as Specified in Its Charter) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Florida</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>000-07152</B></FONT></TD>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>59-0671992</B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or Other Jurisdiction of Incorporation)</B></FONT></TD>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Commission File Number)</B></FONT></TD>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(IRS Employer Identification No.)</B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>595 SOUTH FEDERAL HIGHWAY, SUITE 500</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>BOCA RATON, FLORIDA 33432</B></FONT></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive office)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Company&#146;s telephone number, including area code <U>(561)&nbsp;208-7200 </U> </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions: </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

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<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE> <P
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<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><HR SIZE="3" NOSHADE COLOR="#000000" ALIGN="left">

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On April&nbsp;2, 2007, effective as of March&nbsp;30, 2007, Devcon International Corp., a Florida corporation (the &#147;Company&#148;) entered into
certain Forbearance and Amendment Agreements (the &#147;Forbearance Agreements&#148;) with each of certain institutional investors (the &#147;Required Holders&#148;) holding, in the aggregate, a majority of the Company&#146;s previously-issued
Series A Convertible Preferred Stock (the &#147;Series A Preferred Stock&#148;). Under the terms of these Forbearance Agreements, each of the Required Holders have agreed that for a period of time ending no later than January&nbsp;2, 2008, they
shall each forbear from (a)&nbsp;taking any remedial action with respect to the Company&#146;s failure (the &#147;Effectiveness Failure&#148;) to have declared effective by the United States Securities and Exchange Commission a registration
statement registering the resale of the shares of the Company&#146;s common stock underlying the Series A Preferred Shares and warrants issued in connection therewith as required by that certain Registration Rights Agreement, dated February&nbsp;20,
2005, by and between the Company, the Required Holders and the remaining holder of the Series A Preferred Shares (the &#147;Registration Rights Agreement&#148;), (b)&nbsp;declaring the occurrence of any &#147;Triggering Event&#148; (as defined in
the Certificate of Designations governing the terms of the Series A Preferred Stock) with respect to the Effectiveness Failure and from delivering any Notice of Redemption at Option of Holder (as permitted by the Certificate of Designations) with
respect thereto or (c)&nbsp;demanding any amounts due and payable with respect to the Effectiveness Failure, including without limitation, any Registration Delay Payments. The Forbearance Agreements also contained agreements to amend the governing
Certificate of Designations to revise certain terms of the Series A Preferred Shares, including, without limitation, a reduction in the conversion price of the Series A Preferred Shares set forth in the Certificate of Designations to $6.75,
allowance for the accrual of dividends on the Series A Preferred Shares at a rate equal to 10%&nbsp;per annum, which dividends may be payable in kind, and a revision of the definition of the Leverage Ratio (as such term is defined in the Certificate
of Designations), which revised definition shall provide for the Leverage Ratio to be calculated as a multiple of recurring monthly revenue (&#147;RMR&#148;) as opposed to EBITDA and a revision of the Maximum Leverage Ratio covenant set forth in the
Certificate of Designations to require such Maximum Leverage Ratio to equal 38x RMR, commencing on June&nbsp;30, 2008. The parties to the Forbearance Agreement also agreed to allow dividends to accrue without being paid until the expiration of the
Forbearance Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Other than the Company&#146;s relationship with the Required Holders as holders of the Company&#146;s Series A
Preferred Shares and the Company&#146;s relationship with an affiliate of one of the Required Holders, which is the senior lender of the Company pursuant to that certain Credit Agreement, dated November&nbsp;10, 2005, by and among the Devcon
Security Holdings, Inc., Devcon Security Services Corp., Coastal Security Company, Coastal Security Systems, Inc., Central One, Inc. and CapitalSource Finance LLC, as amended from time to time, there is no material relationship between the Company
and such parties of which the Company is aware. The foregoing description of the Forbearance Agreements is qualified in its entirety by reference to the terms of the Forbearance Agreements, a copies of which are attached to this Current Report on
Form 8-K as Exhibits 10.1 and 10.2 and are incorporated herein by reference. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;2.02 Results of Operations and Financial Condition.
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Late Filing of 10-K </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On April&nbsp;3,
2006, the Company filed a Form 12b-25 with the Securities and Exchange Commission to report that it will not timely file its Annual Report on Form 10-K for the year ended December&nbsp;31, 2005. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The narrative portions of the Form 12b-25, copies of which are filed as Exhibit 99.2 to this report, are incorporated herein by reference. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On April&nbsp;3, 2007, the third institutional investor who holds shares of the Company&#146;s Series A Convertible Preferred Stock but was not a party to
the Forbearance Agreements described above in Item&nbsp;1.01 transmitted a notice of redemption to the Company alleging the Company failed to timely pay the Registration Delay Payments to such Investor constituting a Triggering Event which gave such
Investor the right to require the Company to redeem all shares of Series A Convertible Preferred Stock held by such Investor. The Investor has given the Company the option of accepting certain restructuring terms which the Company does not currently
believe would be in the best </FONT>
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<FONT FACE="Times New Roman" SIZE="2">interests of the Company&#146;s shareholders or redeeming the shares of Series A Convertible Preferred Stock that are held by such investor. This investor
had transmitted a similar notice to the Company on January&nbsp;31, 2007. The Company believed the transmittal of the redemption notice on January&nbsp;31, 2007 to be in error, among other reasons, because the Company believed the terms of the
Registration Rights Agreement provide the Registration Delay Payments were payable on the thirtieth day after the Effectiveness Failure and not on the actual date of the Effectiveness Failure and only the Required Holders could effect such a
redemption. The Investor has noted its disagreement with the Company&#146;s interpretation of the terms of the Registration Rights Agreement. The Company similarly believes the transmittal of this redemption notice to be in error, among other
reasons, because the Company believes the Forbearance Agreements provide the Company temporary relief as it attempts to reach an agreement with the Required Holders as to restructuring options with respect to the Series A Convertible Preferred Stock
and only the Required Holders can effect such a redemption. The Required Holders have not requested any redemption of the Series A Convertible Preferred Stock. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">The Company also believes it has certain legal defenses which would excuse the Company&#146;s performance with respect to the Effectiveness Failure due to the unique circumstances surrounding the SEC&#146;s
interpretation of Rule 415 and the inability of the Company, the holders of the Series A Convertible Preferred Stock and, in the Company&#146;s belief, the general market at the time the documents governing the offering of the Series A Convertible
Preferred Stock were originally negotiated to foresee this new interpretation and the impact it has been having on the private equity markets. No assurances may be given, however, that the Company will prevail with respect to these legal defenses,
if it is necessary to assert them. If the investor delivering the redemption notice is determined by a third party having authority to interpret the governing documents to have the right to immediately demand a redemption of the Series A Convertible
Preferred Stock, the Company could be obligated to redeem the full $7,000,000 face value of the Series A Convertible Preferred Stock held by such investor. If the Required Holders at some point in the future demand a similar redemption and the
Company is unsuccessful at asserting the various legal defenses it believes it has, the Company could be obligated to pay the full $45,000,000 face value of the Series A Convertible Preferred Stock and, in certain circumstances, an additional
premium equal to 15.0% of this face value. The Company does not believe it has sufficient liquidity to satisfy any redemption request which may be presented to it. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B>Item&nbsp;3.03 Material Modification to rights of Security Holders </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">See Item&nbsp;1.01 </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;7.01 Regulation FD Disclosure </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Company
is attaching a copy of a press release, dated April&nbsp;3, 2007, announcing the Company&#146;s entry into the Forbearance Agreements and such press release is incorporated herein by this reference. The Company is also attaching a copy of a press
release, dated April&nbsp;3, 2007, announcing the Company&#146;s filing of the Form 12b-25 and such press release is incorporated herein by this reference. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B>Item&nbsp;9.01 Financial Statements and Exhibits </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(a) Financial Statements of Businesses Acquired </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2"><B>Not Applicable. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(b) Pro Forma
Financial Information </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2"><B>Not Applicable. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B>(c) Exhibits </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-right:0px;margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Document</B></FONT></P></TD></TR>
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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10.1</FONT></TD>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Forbearance and Amendment Agreement, dated as of March&nbsp;30, 2007, by and between the Company and a Required Holder</FONT></TD></TR>
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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10.2</FONT></TD>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Forbearance and Amendment Agreement, dated as of March&nbsp;30, 2007, by and between the Company and a Required Holder</FONT></TD></TR>
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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">99.1</FONT></TD>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press Release Issued by the Company on April&nbsp;3, 2007</FONT></TD></TR>
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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">99.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press Release issued by the Company on April&nbsp;3, 2007</FONT></TD></TR>
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<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">99.3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Narrative portions of the Form 12b-25 filed by Devcon International Corp. on April&nbsp;3, 2007.</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Limitation on Incorporation by Reference </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In accordance with general instruction B.2 of Form 8-K, the information in this report (including the exhibit) that is furnished pursuant to Items 2.02
and 7.01 and shall not be deemed to be &#147;filed&#148; for the purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as amended or otherwise subject to liabilities of that section. This report will not be deemed an admission as to
the materiality of any information in the report that is required to be disclosed solely by Regulation FD. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>DEVCON INTERNATIONAL CORP.</B></FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date: April 4, 2007</FONT></TD>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert Farenhem</FONT></TD></TR>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Name: Robert Farenhem</FONT></TD></TR>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Title: &nbsp;&nbsp;Chief Financial Officer</FONT></TD></TR>
</TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Index to Exhibits </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

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<TD></TD>
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<TD WIDTH="90%"></TD></TR>
<TR>
<TD VALIGN="bottom" STYLE="border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit Title</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Forbearance and Amendment Agreement, dated as of March&nbsp;30, 2007, by and between the Company and a Required Holder</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Forbearance and Amendment Agreement, dated as of March&nbsp;30, 2007, by and between the Company and a Required Holder</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">99.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press Release Issued by the Company on April&nbsp;3, 2007</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">99.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press Release Issued by the Company on April&nbsp;3, 2007</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">99.3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Narrative portions of the Form 12b-25 filed by Devcon International Corp. on April&nbsp;3, 2007.</FONT></TD></TR>
</TABLE>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>dex101.htm
<DESCRIPTION>FORBEARANCE AND AMENDMENT AGREEMENT
<TEXT>
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<TITLE>Forbearance and Amendment Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B><U>FORBEARANCE AND AMENDMENT AGREEMENT </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This FORBEARANCE AND AMENDMENT AGREEMENT (this
&#147;<B>Agreement</B>&#148;), dated as of March&nbsp;30, 2007 (the <B>&#147;Effective Time&#148;</B>) is entered into between Devcon International Corp. (the &#147;<B>Company</B>&#148;) and HBK Main Street Investments L.P. (the
&#147;<B>Investor</B>&#148;). </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>RECITALS </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, in connection with the Securities Purchase Agreement by and among the parties hereto dated as of February&nbsp;10, 2006 (the &#147;<B>Securities Purchase Agreement</B>&#148;), the Company had agreed,
upon the terms and subject to the conditions set forth in the Securities Purchase Agreement, to issue and sell to the Investor and each other buyer set forth therein (collectively, the &#147;<B>Buyers</B>&#148;) (i)&nbsp;at the Initial Closing (as
defined in the Securities Purchase Agreement) warrants (the &#147;<B>Warrants</B>&#148;) which were to be exercisable to purchase shares of Common Stock at an exercise price equal to $11.925 per share (as exercised collectively, the &#147;<B>Warrant
Shares</B>&#148;) and (ii)&nbsp;at the Additional Closing (as defined in the Securities Purchase Agreement), subject to the satisfaction of certain terms and conditions, preferred shares of the Company designated as Series A Convertible Preferred
Stock, the terms of which were set forth in that certain Certificate of Designations for such series of preferred shares (the &#147;<B>Certificate of Designations</B>&#148;), dated as of October&nbsp;16, 2006 (the &#147;<B>Preferred
Shares</B>&#148;) which, among other things, were contemplated to be convertible into shares of the Company&#146;s common stock, par value $0.10 per share (the &#147;<B>Common Stock</B>&#148;) (as converted, the &#147;<B>Conversion
Shares</B>&#148;), in accordance with the terms of the Certificate of Designations; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Preferred Shares may be entitled
to dividends (the &#147;<B>Dividends</B>&#148;), which the Company, subject to certain conditions, may pay in shares of Common Stock (the &#147;<B>Dividend Shares</B>&#148;); </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, to induce the Buyers to execute and deliver the Securities Purchase Agreement, the Company provided certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the &#147;<B>1933 Act</B>&#148;), and applicable state securities laws by entering into that certain Registration Rights
Agreement, dated as of February&nbsp;10, 2006 (the &#147;<B>Registration Rights Agreement</B>&#148;), by and among the Company and the Buyers; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>WHEREAS</B>, under the terms of the Registration Rights Agreement, the Company agreed to use its best efforts to cause a Registration Statement (the &#147;<B>Registration Statement</B>&#148;) registering the resale of the shares (the
&#147;<B>Registrable Shares</B>&#148;) of the Company&#146;s common stock, par value $.10 (the &#147;<B>Common Stock</B>&#148;), issuable upon conversion of the Preferred Shares, exercise of the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">FORBEARANCE AGREEMENT </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">Warrants and in payment of certain dividend obligations under the Certificate of Designations to be declared effective by the Securities and Exchange
Commission (the &#147;<B>SEC</B>&#148;) no later than January&nbsp;25, 2007 (the &#147;<B>Effectiveness Deadline</B>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>WHEREAS,</B> the Company has filed a Registration Statement to register the resale of the Registrable Shares, but has not caused such Registration Statement to be declared effective by the SEC (the &#147;<B>Effectiveness
Failure</B>&#148;) due to comments from the SEC the Company has received with respect thereto, which comments the Company believes make compliance with the current terms of the Registration Rights Agreement impossible; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Securities Purchase Agreement, the Registration Rights Agreement and the Certificate of Designations each provide that provisions of
the respective agreements and instruments may be amended and the observance thereof may be waived, with the written consent of the Company and Buyers holding at least a majority of the Registrable Securities (the &#147;<B>Required
Holders</B>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Certificate of Designations allows that, with the consent of the Required Holders, the Company
may, whether or not prohibited by the terms of the Preferred Shares, waive a right of the Preferred Shares; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the
Registration Rights Agreement further provides that all consents and other determinations required to be made by the Buyers pursuant to the Registration Rights Agreement shall be made by the Required Holders; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, concurrently herewith, the Company has also requested that the Buyers (other than the Investor) enter into agreements in the form of this
Agreement (the &#147;<B>Other Agreements</B>&#148;, and together with this Agreement, the &#147;<B>Forbearance Agreements</B>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>WHEREAS</B>, as a result of the Effectiveness Failure, the Company and the Buyers are in discussions regarding certain potential amendments to and waivers of (the &#147;<B>Amendments</B>&#148;) certain terms of the Securities Purchase
Agreement, the Registration Rights Agreement and the Certificate of Designations; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Investor and each other Buyer is
negotiating the terms of the Amendments independently and, accordingly, such negotiations are anticipated to take an indeterminable amount of time to complete; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, notwithstanding the Company&#146;s belief that it has not currently breached any of the terms of the Transaction Documents, the Company desires to ensure that, during the pendency of such negotiations,
no Buyer will seek to exercise certain remedies or other rights they may have under the Transaction Documents resulting solely from the effects of the circumstances causing the Effectiveness Failure; </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, capitalized terms used but not defined herein shall have the meaning ascribed thereto in
the Securities Purchase Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>NOW, THEREFORE</B>, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.
<U>Forbearance</U> Effective as of the Effective Time (as defined below), the Investor hereby agrees to forbear (the &#147;<B>Forbearance</B>&#148;) from (a)&nbsp;taking any remedial action with respect to the Effectiveness Failure,
(b)&nbsp;declaring the occurrence of any Triggering Event with respect to the Effectiveness Failure having occurred and from delivering any Notice of Redemption at Option of Holder with respect to thereto or (c)&nbsp;demanding any amounts due and
payable with respect to the Effectiveness Failure, including without limitation, any Registration Delay Payments payable with respect to the Preferred Shares, until the earlier of (the &#147;<B>Forbearance Expiration Date</B>&#148; and the period
commencing on the Effective Time and ending on the Forbearance Expiration Date, the &#147;<B>Forbearance Period</B>&#148;): </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">(i) 5:00 p.m. prevailing New York city time on January&nbsp;2, 2008. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(ii) the occurrence of an event of default
described in either of Sections 3(a)(viii) or 3(a)(ix) of the Certificate of Designations; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(iii) such date the Investor
reasonably determines that the Company either (u)&nbsp;is not negotiating the Amendments in good faith, (v)&nbsp;is not using its best efforts to promptly negotiate and enter into the Amendments with the Buyers, (w)&nbsp;has failed to execute such
Amendments as soon as practicable, (x)&nbsp;has breached any covenant or other agreement set forth in any Forbearance Agreement, or (y)&nbsp;failed to obtain the Shareholder Approval by the Shareholder Meeting Deadline, provided that in the case of
the Investor making any of the determinations described in (u)&nbsp;&#150; (y)&nbsp;above, the Company shall have first failed to use its best efforts to remedy the same within two (2)&nbsp;Business Days after receiving written notice thereof from
the Investor; and </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(iv) the Amendments Closing Date (as defined in Section&nbsp;2(B)(iii) below). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Notwithstanding anything set forth herein to the contrary, the Forbearance is conditioned upon the Company&#146;s agreement not to, and not to cause any
of its Subsidiaries to, issue, in one or a series of transactions, any debt or equity securities that are senior to the Preferred Shares, or any debt or equity securities that are junior to the Preferred Shares, in the latter case, in an amount
resulting in net proceeds to the Company in excess of $5 million, except Excluded Securities (as defined in the Certificate of Designations), without the prior written consent of the Required Holders prior to the Forbearance Expiration Date.
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Additional Covenants and Waiver</U>. The following covenants, agreements and waivers shall each
become effective as of the Effective Time and shall terminate on the Forbearance Expiration Date: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) <U>Withdrawal of Registration
Statement</U>. The Company shall, as soon as practicable, take all steps necessary to effect a withdrawal under SEC Rule 477 of the Registration Statement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(b) <U>Amended and Restated Certificate of Designation</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:10%"><FONT FACE="Times New Roman" SIZE="2">(i) In furtherance of
effecting the Amendments as soon as practicable, but no later than ten (10)&nbsp;Business Days of the date hereof (such date, the &#147;<B>COD Date</B>&#148;), the Company and the Required Holders shall agree to attach as <U>Exhibit A</U> to each of
the Forbearance Agreements a form of Amended and Restated Certificate of Designations (the &#147;<B>Amended Certificate of Designations</B>&#148;) setting forth certain revised terms of the Preferred Shares, including, without limitation, a
reduction in the conversion price of the Preferred Shares set forth in the Certificate of Designations to $6.75, allowance for the accrual of dividends on the Preferred Shares at a rate equal to 10%&nbsp;per annum, which dividends may be payable in
kind; and a revision of the definition of the Leverage Ratio (as such term is defined in the Certificate of Designations), which revised definition shall provide for the Leverage Ratio to be calculated as a multiple of recurring monthly revenue
(&#147;<B>RMR</B>&#148;) as opposed to EBITDA and a revision of the Maximum Leverage Ratio covenant set forth in the Certificate of Designations to require such Maximum Leverage Ratio to equal 38x RMR, commencing on June&nbsp;30, 2008. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:10%"><FONT FACE="Times New Roman" SIZE="2">(ii) As soon as practicable, the Company shall use its best efforts to obtain from shareholders holding a majority of the
Company&#146;s outstanding shares of common stock and a majority of the Preferred Shares executed commitments to vote at a meeting of the Company&#146;s shareholders approving in accordance with applicable law and the Company&#146;s governing
documents resolutions (the &#147;<B>Resolutions</B>&#148;) in form and substance reasonably acceptable to the Investor providing for the amendment and restatement of the Certificate of Designations in the form of the Amended Certificate of
Designations (such affirmative approval being referred to herein as the &#147;<B>Shareholder Approval</B>&#148;). The Company shall provide each shareholder entitled to vote at the annual meeting of shareholders of the Company (the
&#147;<B>Shareholder Meeting</B>&#148;), which shall be promptly called and held not later than (x)&nbsp;in the event the applicable proxy statement is not reviewed by the SEC, July&nbsp;1, 2007 and (y)&nbsp;otherwise, October&nbsp;1, 2007 (the
&#147;<B>Shareholder Meeting Deadline</B>&#148; and the actual date of such meeting, the &#147;<B>Shareholder Meeting Date</B>&#148;), a proxy statement, substantially in the form which has been previously reviewed and approved by the Investor and
Schulte Roth&nbsp;&amp; Zabel at the expense of the Company, soliciting each such shareholder&#146;s affirmative vote at the Shareholder Meeting for Shareholder Approval of the Resolutions (the date such approval is obtained, the
&#147;<B>Shareholder Approval Date</B>&#148;), and the Company shall use its best efforts to solicit its </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">shareholders&#146; approval of the Resolutions and to cause its Board of Directors to recommend to the shareholders that they approve the Resolutions. The
Company shall be obligated to seek to obtain such Shareholder Approval by the Shareholder Meeting Deadline. If, despite the Company&#146;s best efforts, the Shareholder Approval is not obtained by the Shareholder Meeting Deadline, the Company shall
cause an additional Shareholder Meeting to be held each calendar quarter thereafter (or such longer period as is necessary to the extent of SEC comments on any proxy statement) until such Shareholder Approval is obtained. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:10%"><FONT FACE="Times New Roman" SIZE="2">(iii) Upon filing of the Amended and Restated Certificate of Designations with the Secretary of State of Florida in accordance with
applicable Florida law after effectiveness of the Shareholder Approval in accordance with applicable federal securities laws, the Company shall enter into an Amended and Restated Registration Rights Agreement, Amended and Restated Securities
Purchase and such other documents determined by the parties hereto to be reasonable necessary to effect such amendments (collectively, the &#147;<B>Other Amendment Documents</B>&#148;). The time at which (x)&nbsp;the Amended and Restated Certificate
of Designations is filed with the Secretary of State of Florida, (y)&nbsp;all Other Amendment Documents have been executed and delivered and (z)&nbsp;all closing conditions set forth in such Other Amendment Documents have been met or waived by the
parties thereto shall be referred to herein as the &#147;<B>Amendment Closing Date</B>&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <B><U>Accrual of Dividends</U></B>. The
parties hereto agree that, as a waiver of the rights of the Preferred Shares to receive dividends on each Dividend Date (as defined in the Certificate of Designations) during the Forbearance Period, commencing as of the Effective Time and until the
Forbearance Expiration Date (the &#147;<B>Dividend Payment Date</B>&#148;), all dividends payable with respect to the Preferred Shares shall accrue but not be payable until the Dividend Payment Date, at which time the Company shall pay all such
accrued dividends in any manner allowed pursuant to the Amended and Restated Certificate of Designations as if such date was a Dividend Date. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">4. <B><U>Amendments; Acknowledgments; Ratifications</U></B>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) <B><U>Registration Rights Agreement Amendments</U></B>. The
Investor hereby agrees that during the Forbearance Period, the Registration Rights Agreement is hereby amended to replace the definition of &#147;Effectiveness Deadline&#148; with the following: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:6%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B>Effectiveness Deadline</B>&#148; means the later of (x)&nbsp;the date which is 45 days after the Filing Deadline (as defined below), or if there
is a full review of the Registration Statement by the SEC, 90 days after the Filing Deadline and (y)&nbsp;the Forbearance Expiration Date (as defined in those certain Forbearance Agreements, each by and among the Company and a Buyer, entered into on
March&nbsp;30, 2007 or thereafter). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <B><U>Leverage Ratio</U></B>. The Investor hereby agrees that, as a waiver of the rights of the
Preferred Shares, during the Forbearance Period, the definition of the &#147;Leverage Ratio&#148; set forth in the Certificate of Designations and the maximum Leverage Ratio required to be maintained by the Company by the terms of the Certificate of
Designation shall be the definition of &#147;Qualifying Retail RMR Leverage Ratio&#148; and the maximum Qualifying Retail RMR Leverage Ratio set forth in that certain Credit Agreement, dated November&nbsp;10, 2005, by and among the Devcon Security
Holdings, Inc., Devcon Security Services Corp., Coastal Security Company, Coastal Security Systems, Inc., Central One, Inc. and CapitalSource Finance LLC, as amended from time to time. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <B><U>Ratifications</U></B>. Except as otherwise expressly provided herein, the Securities Purchase Agreement, Registration Rights Agreement, and
each other Transaction Documents is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">5. <B><U>Effective Time; 8-K Filing</U></B>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) This Agreement shall become effective upon execution by the Required Holders of
the Forbearance Agreements (such date, the &#147;<B>Effective Time</B>&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) On or before 8:30 a.m., New York Time, on the first
(1st)&nbsp;Business Day following the later to occur of (x)&nbsp;the COD Date and (y)&nbsp;the Effective Time, the Company shall file a Current Report on Form 8-K describing the terms of the transactions contemplated by the Forbearance Agreements in
the form required by the 1934 Act and attaching the Forbearance Agreements (including, without limitation, this Agreement and the form of Amended Certificate of Designations, (including all attachments, the &#147; <B>8-K Filing</B>&#148;). From and
after the filing with the SEC of the 8-K Filing, the Company shall have disclosed any material nonpublic information delivered to the Investor by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or
agents. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents, not to, provide the Investor with any material, nonpublic information regarding the Company or
any of its Subsidiaries from and after the 8-K Filing with the SEC without the express written consent of the Investor. Subject to the foregoing, neither the Company, its Subsidiaries nor the Investor shall issue any press releases or any other
public statements with respect to the transactions contemplated hereby; <U>provided</U>, <U>however</U>, that the Company shall be entitled, without the prior approval of the Investor, to make any press release or other public disclosure with
respect to such transactions (i)&nbsp;in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii)&nbsp;as is required by applicable law and regulations (provided that in the case of clause (i)&nbsp;the Investor shall be
consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without the prior written consent of the Investor, neither the Company nor any of its Subsidiaries shall disclose the name of the
Investor in any filing, announcement, release or otherwise. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) The parties agree that that certain Confidentiality Agreement, by and among the Company and the
Investor dated January&nbsp;1, 2006 (the &#147;<B>Confidentiality Agreement</B>&#148;) shall immediately terminate and be null and void as of the earlier to occur of (i)&nbsp;the date of the filing of the 8-K Filing with the SEC and (ii)&nbsp;such
date as the Confidentiality Agreement terminates in accordance with its terms. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <B><U>Miscellaneous</U></B> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) Except as expressly set forth herein, the execution of this Agreement and any discussions, negotiations, correspondence and other communications,
drafts of documents and meetings among the parties hereto <I>do not</I> represent and <I>shall not</I> be construed or relied upon as being (i)&nbsp;a waiver of or prejudicial to any rights the parties may have or (ii)&nbsp;a waiver of the
parties&#146; rights under any statute or under any applicable law or (iii)&nbsp;an admission or declaration against interest by either party hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(b) Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(c) All notices to be given pursuant to this Agreement shall be delivered in accordance with the terms of the Securities Purchase Agreement: </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) This Agreement may not be modified except by a written instrument executed by the Company and the Investor. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) Nothing contained in this Agreement shall be deemed (i)&nbsp;an admission by any other party or (ii)&nbsp;a waiver of any rights or defenses, except
with respect to the Forbearance until the Forbearance Expiration Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. <B>EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. </B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(h) At the Effective Time, the Company shall reimburse the Investor for its legal fees and expenses in connection with the preparation and
negotiation of this Agreement and the transactions related thereto by paying any such amount to Schulte Roth&nbsp;&amp; Zabel LLP by wire transfer of immediately available funds in accordance with the instructions provided by Schulte Roth&nbsp;&amp;
Zabel LLP to the Company on or prior to the Effective Time. Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred
by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) This Agreement is
intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(j) The obligations of the Investor under any Transaction Document or Forbearance Agreement are several and not joint with the obligations of any other
Buyer, and the Investor shall not be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document or Forbearance Agreement. Nothing contained herein or in any other Transaction Document or
Forbearance Agreement, and no action taken by the Investor pursuant hereto, shall be deemed to constitute the Investor and the other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that
the Investor and the other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents or the Forbearance Agreements. The Company and the Investor confirm that
the Investor has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Investor shall be entitled to independently protect and enforce its rights, including,
without limitation, the rights arising out of this Agreement or out of any other Transaction Documents or Forbearance Agreement, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such
purpose. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF,</B> the Investor and the Company have caused their respective signature page to
this Forbearance and Amendment Agreement to be duly executed as of the date first written above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>COMPANY:</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>DEVCON INTERNATIONAL CORP.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/S/ Robert C. Farenhem</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Robert C. Farenhem</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Chief Financial Officer</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">FORBEARANCE AGREEMENT </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF,</B> the Investor and the Company have caused their respective signature page to
this Forbearance and Amendment Agreement to be duly executed as of the date first written above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>INVESTOR:</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>HBK MAIN STREET INVESTMENTS L.P.</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ J. Baker Gentry, Jr.</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">J. Baker Gentry, Jr.</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Arthorized Signature</FONT></P></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">FORBEARANCE AGREEMENT </FONT></P>

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<DESCRIPTION>FORBEARANCE AND AMENDMENT AGREEMENT
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B><U>FORBEARANCE AND AMENDMENT AGREEMENT </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This FORBEARANCE AND AMENDMENT AGREEMENT (this
&#147;<B>Agreement</B>&#148;), dated as of March&nbsp;30, 2007 (the <B>&#147;Effective Time&#148;</B>) is entered into between Devcon International Corp. (the &#147;<B>Company</B>&#148;) and CS Equity II LLC (the &#147;<B>Investor</B>&#148;).
</FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>RECITALS </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>WHEREAS</B>, in connection with the Securities Purchase Agreement by and among the parties hereto dated as of February&nbsp;10, 2006 (the &#147;<B>Securities Purchase Agreement</B>&#148;), the Company had agreed, upon the terms and
subject to the conditions set forth in the Securities Purchase Agreement, to issue and sell to the Investor and each other buyer set forth therein (collectively, the &#147;<B>Buyers</B>&#148;) (i)&nbsp;at the Initial Closing (as defined in the
Securities Purchase Agreement) warrants (the &#147;<B>Warrants</B>&#148;) which were to be exercisable to purchase shares of Common Stock at an exercise price equal to $11.925 per share (as exercised collectively, the &#147;<B>Warrant
Shares</B>&#148;) and (ii)&nbsp;at the Additional Closing (as defined in the Securities Purchase Agreement), subject to the satisfaction of certain terms and conditions, preferred shares of the Company designated as Series A Convertible Preferred
Stock, the terms of which were set forth in that certain Certificate of Designations for such series of preferred shares (the &#147;<B>Certificate of Designations</B>&#148;), dated as of October&nbsp;16, 2006 (the &#147;<B>Preferred
Shares</B>&#148;) which, among other things, were contemplated to be convertible into shares of the Company&#146;s common stock, par value $0.10 per share (the &#147;<B>Common Stock</B>&#148;) (as converted, the &#147;<B>Conversion
Shares</B>&#148;), in accordance with the terms of the Certificate of Designations; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Preferred Shares may be entitled
to dividends (the &#147;<B>Dividends</B>&#148;), which the Company, subject to certain conditions, may pay in shares of Common Stock (the &#147;<B>Dividend Shares</B>&#148;); </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, to induce the Buyers to execute and deliver the Securities Purchase Agreement, the Company provided certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the &#147;<B>1933 Act</B>&#148;), and applicable state securities laws by entering into that certain Registration Rights
Agreement, dated as of February&nbsp;10, 2006 (the &#147;<B>Registration Rights Agreement</B>&#148;), by and among the Company and the Buyers; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><B>WHEREAS</B>, under the terms of the Registration Rights Agreement, the Company agreed to use its best efforts to cause a Registration Statement (the &#147;<B>Registration Statement</B>&#148;) registering the resale of the shares (the
&#147;<B>Registrable Shares</B>&#148;) of the Company&#146;s common stock, par value $.10 (the &#147;<B>Common Stock</B>&#148;), issuable upon conversion of the Preferred Shares, exercise of the Warrants and in payment of certain dividend
obligations under the Certificate of Designations to be declared effective by the Securities and Exchange Commission (the &#147;<B>SEC</B>&#148;) no later than January&nbsp;25, 2007 (the &#147;<B>Effectiveness Deadline</B>&#148;); </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS,</B> the Company has filed a Registration Statement to register the resale of the Registrable
Shares, but has not caused such Registration Statement to be declared effective by the SEC (the &#147;<B>Effectiveness Failure</B>&#148;) due to comments from the SEC the Company has received with respect thereto, which comments the Company believes
make compliance with the current terms of the Registration Rights Agreement impossible; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Securities Purchase Agreement,
the Registration Rights Agreement and the Certificate of Designations each provide that provisions of the respective agreements and instruments may be amended and the observance thereof may be waived, with the written consent of the Company and
Buyers holding at least a majority of the Registrable Securities (the &#147;<B>Required Holders</B>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the
Certificate of Designations allows that, with the consent of the Required Holders, the Company may, whether or not prohibited by the terms of the Preferred Shares, waive right of the Preferred Shares; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Registration Rights Agreement further provides that all consents and other determinations required to be made by the Buyers pursuant
to the Registration Rights Agreement shall be made by the Required Holders; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, concurrently herewith, the Company has also
requested that the Buyers (other than the Investor) enter into agreements in the form of this Agreement (the &#147;<B>Other Agreements</B>&#148;, and together with this Agreement, the &#147;<B>Forbearance Agreements</B>&#148;); </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, as a result of the Effectiveness Failure, the Company and the Buyers are in discussions regarding certain potential amendments to and
waivers of (the &#147;<B>Amendments</B>&#148;) certain terms of the Securities Purchase Agreement, the Registration Rights Agreement and the Certificate of Designations; and </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, the Investor and each other Buyer is negotiating the terms of the Amendments independently and, accordingly, such negotiations are
anticipated to take an indeterminable amount of time to complete; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, notwithstanding the Company&#146;s belief that it has
not currently breached any of the terms of the Transaction Documents, the Company desires to ensure that, during the pendency of such negotiations, no Buyer will seek to exercise certain remedies or other rights they may have under the Transaction
Documents resulting solely from the effects of the circumstances causing the Effectiveness Failure; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>WHEREAS</B>, capitalized terms used
but not defined herein shall have the meaning ascribed thereto in the Securities Purchase Agreement. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>NOW, THEREFORE</B>, in consideration of the foregoing, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Forbearance</U> Effective
as of the Effective Time (as defined below), the Investor hereby agrees to forbear (the &#147;<B>Forbearance</B>&#148;) from (a)&nbsp;taking any remedial action with respect to the Effectiveness Failure, (b)&nbsp;declaring the occurrence of any
Triggering Event with respect to the Effectiveness Failure having occurred and from delivering any Notice of Redemption at Option of Holder with respect to thereto or (c)&nbsp;demanding any amounts due and payable with respect to the Effectiveness
Failure, including without limitation, any Registration Delay Payments payable with respect to the Preferred Shares, until the earlier of (the &#147;<B>Forbearance Expiration Date</B>&#148; and the period commencing on the Effective Time and ending
on the Forbearance Expiration Date, the &#147;<B>Forbearance Period</B>&#148;): </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(i) 5:00 p.m. prevailing New York city time
on January&nbsp;2, 2008. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(ii) the occurrence of an event of default described in either of Sections 3(a)(viii) or 3(a)(ix)
of the Certificate of Designations; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(iii) such date the Investor reasonably determines that the Company either (u)&nbsp;is
not negotiating the Amendments in good faith, (v)&nbsp;is not using its best efforts to promptly negotiate and enter into the Amendments with the Buyers, (w)&nbsp;has failed to execute such Amendments as soon as practicable, (x)&nbsp;has breached
any covenant or other agreement set forth in any Forbearance Agreement, or (y)&nbsp;failed to obtain the Shareholder Approval by the Shareholder Meeting Deadline, provided that in the case of the Investor making any of the determinations described
in (u)&nbsp;&#150; (y)&nbsp;above, the Company shall have first failed to use its best efforts to remedy the same within two (2)&nbsp;Business Days after receiving written notice thereof from the Investor; and </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(iv) the Amendments Closing Date (as defined in Section&nbsp;2(B)(iii) below). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Notwithstanding anything set forth herein to the contrary, the Forbearance is conditioned upon the Company&#146;s agreement not to, and not to cause any
of its Subsidiaries to, issue, in one or a series of transactions, any debt or equity securities that are senior to the Preferred Shares, or any debt or equity securities that are junior to the Preferred Shares, in the latter case, in an amount
resulting in net proceeds to the Company in excess of $5 million, except Excluded Securities (as defined in the Certificate of Designations) without the prior written consent of the Required Holders prior to the Forbearance Expiration Date.
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Additional Covenants and Waiver</U>. The following covenants, agreements and waivers shall each
become effective as of the Effective Time and shall terminate on the Forbearance Expiration Date: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) <U>Withdrawal of Registration
Statement</U>. The Company shall, as soon as practicable, take all steps necessary to effect a withdrawal under SEC Rule 477 of the Registration Statement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(b) <U>Amended and Restated Certificate of Designation</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) In furtherance of effecting
the Amendments as soon as practicable, but no later than ten (10)&nbsp;Business Days of the date hereof (such date, the &#147;<B>COD Date</B>&#148;), the Company and the Required Holders shall agree to attach as <U>Exhibit A</U> to each of the
Forbearance Agreements a form of Amended and Restated Certificate of Designations (the &#147;<B>Amended Certificate of Designations</B>&#148;) setting forth certain revised terms of the Preferred Shares, including, without limitation, a reduction in
the conversion price of the Preferred Shares set forth in the Certificate of Designations to $6.75, allowance for the accrual of dividends on the Preferred Shares at a rate equal to 10%&nbsp;per annum, which dividends may be payable in kind; and a
revision of the definition of the Leverage Ratio (as such term is defined in the Certificate of Designations), which revised definition shall provide for the Leverage Ratio to be calculated as a multiple of recurring monthly revenue
(&#147;<B>RMR</B>&#148;) as opposed to EBITDA and a revision of the Maximum Leverage Ratio covenant set forth in the Certificate of Designations to require such Maximum Leverage Ratio to equal 38x RMR, commencing on June&nbsp;30, 2008. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ii) As soon as practicable, the Company shall use its best efforts to obtain from shareholders holding a majority of the
Company&#146;s outstanding shares of common stock and a majority of the Preferred Shares executed commitments to vote at a meeting of the Company&#146;s shareholders approving in accordance with applicable law and the Company&#146;s governing
documents resolutions (the &#147;<B>Resolutions</B>&#148;) in form and substance reasonably acceptable to the Schulte Roth&nbsp;&amp; Zabel providing for the amendment and restatement of the Certificate of Designations in the form of the Amended
Certificate of Designations (such affirmative approval being referred to herein as the &#147;<B>Shareholder Approval</B>&#148;). The Company shall provide each shareholder entitled to vote at the annual meeting of shareholders of the Company (the
&#147;<B>Shareholder Meeting</B>&#148;), which shall be promptly called and held not later than (x)&nbsp;in the event the applicable proxy statement is not reviewed by the SEC, July&nbsp;1, 2007 and (y)&nbsp;otherwise, October 1, 2007 (the
&#147;<B>Shareholder Meeting Deadline</B>&#148; and the actual date of such meeting, the &#147;<B>Shareholder Meeting Date</B>&#148;), a proxy statement, substantially in the form which has been previously reviewed and approved by the Schulte
Roth&nbsp;&amp; Zabel at the expense of the Company, soliciting each such shareholder&#146;s affirmative vote at the Shareholder Meeting for Shareholder Approval of the Resolutions (the date such approval is obtained, the &#147;<B>Shareholder
Approval Date</B>&#148;), and the Company shall use its best efforts to </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%">
<FONT FACE="Times New Roman" SIZE="2">solicit its shareholders&#146; approval of the Resolutions and to cause its Board of Directors to recommend to the shareholders that they approve the
Resolutions. The Company shall be obligated to seek to obtain such Shareholder Approval by the Shareholder Meeting Deadline. If, despite the Company&#146;s best efforts, the Shareholder Approval is not obtained by the Shareholder Meeting Deadline,
the Company shall cause an additional Shareholder Meeting to be held each calendar quarter thereafter (or such longer period as is necessary to the extent of SEC comments on any proxy statement) until such Shareholder Approval is obtained.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:2%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(iii) Upon filing of the Amended and Restated Certificate of Designations with the Secretary of State of Florida in
accordance with applicable Florida law after effectiveness of the Shareholder Approval in accordance with applicable federal securities laws, the Company shall enter into an Amended and Restated Registration Rights Agreement, Amended and Restated
Securities Purchase and such other documents determined by the parties hereto to be reasonable necessary to effect such amendments (collectively, the &#147;<B>Other Amendment Documents</B>&#148;). The time at which (x)&nbsp;the Amended and Restated
Certificate of Designations is filed with the Secretary of State of Florida, (y)&nbsp;all Other Amendment Documents have been executed and delivered and (z)&nbsp;all closing conditions set forth in such Other Amendment Documents have been met or
waived by the parties thereto shall be referred to herein as the &#147;<B>Amendment Closing Date</B>&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <B><U>Accrual of
Dividends</U></B>. The parties hereto agree that, as a waiver of the rights of the Preferred Shares to receive dividends on each Dividend Date (as defined in the Certificate of Designations) during the Forbearance Period, commencing as of the
Effective Time and until the Forbearance Expiration Date (the &#147;<B>Dividend Payment Date</B>&#148;), all dividends payable with respect to the Preferred Shares shall accrue but not be payable until the Dividend Payment Date, at which time the
Company shall pay all such accrued dividends in any manner allowed pursuant to the Amended and Restated Certificate of Designations as if such date was a Dividend Date. </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">4.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B><U>Amendments; Acknowledgments; Ratifications</U></B>. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(a) <B><U>Registration Rights Agreement Amendments</U></B>. The Investor hereby agrees that during the Forbearance Period, the Registration Rights Agreement is hereby amended to replace the definition of &#147;Effectiveness Deadline&#148;
with the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B>Effectiveness Deadline</B>&#148; means the later of (x)&nbsp;the date which is 45 days after the Filing
Deadline (as defined below), or if there is a full review of the Registration Statement by the SEC, 90 days after the Filing Deadline and (y)&nbsp;the Forbearance Expiration Date (as defined in those certain Forbearance Agreements, each by and among
the Company and a Buyer, entered into on March&nbsp;30, 2007 or thereafter). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <B><U>Leverage Ratio</U></B>. The Investor hereby agrees that, as a waiver of the rights of the
Preferred Shares, during the Forbearance Period, the definition of the &#147;Leverage Ratio&#148; set forth in the Certificate of Designations and the maximum Leverage Ratio required to be maintained by the Company by the terms of the Certificate of
Designation shall be the definition of &#147;Qualifying Retail RMR Leverage Ratio&#148; and the maximum Qualifying Retail RMR Leverage Ratio set forth in that certain Credit Agreement, dated November&nbsp;10, 2005, by and among the Devcon Security
Holdings, Inc., Devcon Security Services Corp., Coastal Security Company, Coastal Security Systems, Inc., Central One, Inc. and CapitalSource Finance LLC, as amended from time to time. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <B><U>Ratifications</U></B>. Except as otherwise expressly provided herein, the Securities Purchase Agreement, Registration Rights Agreement, and
each other Transaction Documents is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">5.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B><U>Effective Time; 8-K Filing</U></B>. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) This
Agreement shall become effective upon execution by the Required Holders of the Forbearance Agreements (such date, the &#147;<B>Effective Time</B>&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(b) On or before 8:30 a.m., New York Time, on the first (1st)&nbsp;Business Day following the later to occur of (x)&nbsp;the COD Date and (y)&nbsp;the Effective Time, the Company shall file a Current Report on Form
8-K describing the terms of the transactions contemplated by the Forbearance Agreements in the form required by the 1934 Act and attaching the Forbearance Agreements (including, without limitation, this Agreement and the form of Amended Certificate
of Designations, (including all attachments, the &#147; <B>8-K Filing</B>&#148;). From and after the filing with the SEC of the 8-K Filing, the Company shall have disclosed any material nonpublic information delivered to the Investor by the Company
or any of its Subsidiaries, or any of their respective officers, directors, employees or agents. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents, not to,
provide the Investor with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the 8-K Filing with the SEC without the express written consent of the Investor. Subject to the foregoing, neither the
Company, its Subsidiaries nor the Investor shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; <U>provided</U>, <U>however</U>, that the Company shall be entitled, without the prior
approval of the Investor, to make any press release or other public disclosure with respect to such transactions (i)&nbsp;in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii)&nbsp;as is required by applicable law
and regulations (provided that in the case of clause (i)&nbsp;the Investor shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without the prior written consent of the
Investor, neither the Company nor any of its Subsidiaries shall disclose the name of the Investor in any filing, announcement, release or otherwise. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">6.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B><U>Miscellaneous</U></B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) Except as expressly set
forth herein, the execution of this Agreement and any discussions, negotiations, correspondence and other communications, drafts of documents and meetings among the parties hereto <I>do not</I> represent and <I>shall not</I> be construed or relied
upon as being (i)&nbsp;a waiver of or prejudicial to any rights the parties may have or (ii)&nbsp;a waiver of the parties&#146; rights under any statute or under any applicable law or (iii)&nbsp;an admission or declaration against interest by either
party hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) All notices to be given pursuant to this Agreement shall be delivered in accordance with the terms of the
Securities Purchase Agreement: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) This Agreement may not be modified except by a written instrument executed by the Company and the
Investor. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) Nothing contained in this Agreement shall be deemed (i)&nbsp;an admission by any other party or (ii)&nbsp;a waiver of any
rights or defenses, except with respect to the Forbearance until the Forbearance Expiration Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The
City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each
party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. <B>EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. </B> </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(g) This Agreement may be executed in two or more identical counterparts, all of which shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(h) At the Effective
Time, the Company shall reimburse the Investor for its legal fees and expenses in connection with the preparation and negotiation of this Agreement and the transactions related thereto by paying any such amount to Katten Muchin Rosenman LLP by wire
transfer of immediately available funds in accordance with the instructions provided by Katten Muchin Rosenman LLP to the Company on or prior to the Effective Time. Except as otherwise set forth in this Agreement, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(j) The obligations of the Investor under any Transaction Document or
Forbearance Agreement are several and not joint with the obligations of any other Buyer, and the Investor shall not be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document or Forbearance
Agreement. Nothing contained herein or in any other Transaction Document or Forbearance Agreement, and no action taken by the Investor pursuant hereto, shall be deemed to constitute the Investor and the other Buyers as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investor and the other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents
or the Forbearance Agreements. The Company and the Investor confirm that the Investor has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Investor shall be
entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents or Forbearance Agreement, and it shall not be necessary for any other Buyer
to be joined as an additional party in any proceeding for such purpose. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">[The remainder of the page is intentionally left blank] </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF,</B> the Investor and the Company have caused their respective signature page to
this Forbearance and Amendment Agreement to be duly executed as of the date first written above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>COMPANY:</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>DEVCON INTERNATIONAL CORP.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert C. Farenbem</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Robert C. Farenhem</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Chief Financial Officer</FONT></P></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF,</B> the Investor and the Company have caused their respective signature page to
this Forbearance and Amendment Agreement to be duly executed as of the date first written above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>INVESTOR:</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>CS EQUITY II LLC</B> <B></B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Keith Reuben</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Keith Reuben</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Authorized Signatory</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>FORBEARANCE AGREEMENT</I> </FONT></P>

</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>dex991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<HTML><HEAD>
<TITLE>Press Release</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT 99.1 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="89%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">[GRAPHIC APPEARS HERE]</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>news</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>595 South Federal Highway, Suite 500, Boca Raton, FL 33432 &#149; 561-208-7200 </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">FOR IMMEDIATE RELEASE</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">SYMBOL:&nbsp;DEVC</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">April&nbsp;3, 2007</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Traded: Nasdaq</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Devcon International Corp. Enters Into Forbearance and Amendment Agreements </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>With Certain Institutional Investors </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Boca Raton,
FL, April&nbsp;3, 2007</B>&#151; Devcon International Corp. (NASDAQ: <U>DEVC</U>), a leading regional electronic security services provider, announced today that on April&nbsp;2, 2007, effective as of March&nbsp;30, 2007, it has entered into
Forbearance and Amendment Agreements (the &#148;Forbearance Agreements) with certain institutional investors (the &#147;Required Holders&#148;) holding, in the aggregate, a majority of the Company&#146;s previously-issued Series A Convertible
Preferred Stock (the &#147;Series A Preferred Stock&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Under the terms of these Forbearance Agreements, the Required Holders have agreed that for a
period of time ending no later than January&nbsp;2, 2008, they shall each refrain from taking any remedial action with respect to the Company&#146;s failure (the &#147;Effectiveness Failure&#148;) to have declared effective by the United States
Securities and Exchange Commission a registration statement registering the resale of the shares of Devcon&#146;s common stock underlying the Series A Preferred Shares and warrants as required by a Registration Rights Agreement, dated
February&nbsp;20, 2005, by and between the Company, the Required Holders and the remaining holder of the Series A Preferred Shares (the &#147;Registration Rights Agreement&#148;). The parties also agreed to refrain from declaring the occurrence of
any &#147;Triggering Event&#148; with respect to the Effectiveness Failure and from delivering any Notice of Redemption at Option of Holder with respect&nbsp;thereto or demanding any amounts due and payable with respect to the Effectiveness Failure,
including without limitation, any Registration Delay Payments. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Forbearance Agreements also contain agreements to amend the governing Certificate of
Designations to revise certain terms of the Series A Preferred Shares, including, without limitation, a reduction in the conversion price of the Series A Preferred Shares to $6.75, allowance for the accrual of dividends on the Series A Preferred
Shares at a rate equal to 10%&nbsp;per annum, which dividends may be payable in kind, and a revision of the definition of the Leverage Ratio. The revised definition shall provide for the Leverage Ratio to be calculated as a multiple of recurring
monthly revenue ("RMR") as opposed to EBITDA and a revision of the Maximum Leverage Ratio covenant to require the Maximum Leverage Ratio to equal 38x RMR, commencing on June&nbsp;30, 2008.</FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The parties to the Forbearance Agreement also agreed to allow dividends to accrue but not be payable until the expiration of the Forbearance Period. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Notwithstanding these Forbearance Agreements, on April&nbsp;3, 2007, the third institutional investor who holds shares of the Company&#146;s Series A Convertible
Preferred Stock, but was not a party to the Forbearance Agreements, transmitted a notice of redemption to the Company alleging the Company failed to timely pay certain Registration Delay Payments constituting a Triggering Event </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">which gave such investor the right to require the Company to redeem all shares of Series A Convertible Preferred Stock held by such investor. The Company
disagrees that this investor has such redemption right and intends to vigorously contest any actions taken by this investor to enforce such alleged right. The investor holds shares of the Company&#146;s Series A Convertible Preferred Stock with a
face value equal to $7,000,000. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>About Devcon International </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Devcon has two operating divisions. The Security Division, (http://www.devcon-security.com) which provides electronic security services to commercial and residential customers in selected markets, is the eleventh largest security monitoring
and alarm company in the U.S. and the second largest in Florida. The Materials Division, which represents a small portion of Devcon&#146;s business, produces and distributes crushed stone, ready-mix concrete and concrete block on St. Maarten in the
Netherlands Antilles and on St. Martin in the French West Indies. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Forward-Looking Statements </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">This press release may contain statements, which are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements contain projections of Devcon&#146;s future results of operations, financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. You should not rely on forward-looking statements because Devcon&#146;s actual results may differ materially from those indicated by these
forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in
our financial condition and results of operation; the impact of competition and technology change; existing and future regulations effecting our business, and other risks and uncertainties discussed under the heading "Item 1A&#151;Risk Factors" in
Devcon&#146;s Annual Report on Form 10-K for the period ended December&nbsp;31, 2005 as filed with the Securities and Exchange Commission, and other reports Devcon files from time to time with the Securities and Exchange Commission. Devcon does not
intend to and undertakes no duty to update the information contained in this press release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">### </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">For More Information: Stan Smith (561)&nbsp;955-7300 or SSmith@RPCP.com </FONT></P>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>5
<FILENAME>dex992.htm
<DESCRIPTION>PRESS RELEASE
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<TITLE>Press Release</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT 99.2 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">[GRAPHIC APPEARS HERE]</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>news</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>595 South Federal Highway, Suite 500, Boca Raton, FL 33432 &#149; 561-208-7200 </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">FOR IMMEDIATE RELEASE</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">SYMBOL:&nbsp;DEVC</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">April&nbsp;3, 2007</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Traded: Nasdaq</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Devcon International Corp. Files Form 12b-25 with </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Securities and Exchange Commission </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Boca Raton, FL,
April&nbsp;3, 2007</B>&#151; Devcon International Corp. (NASDAQ: <U>DEVC</U>), a leading regional electronic security services provider, announced today that it has filed with the Securities and Exchange Commission, a 12b-25 "Notification of Late
Filing" requesting a 15 calendar day extension to file its Annual Report on Form 10-K for the period ended December&nbsp;31, 2006. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Company is not yet
able to file its Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2006 because it is experiencing delays in the collection and compilation of certain financial information required to be included in the Form&nbsp;10-K,
including, without limitation, information relating to a Forbearance Agreement executed with holders of a majority of the outstanding shares of the Registrant&#146;s Series A Convertible Preferred Stock on March&nbsp;30, 2007 and a review of the
valuation and impairment of certain assets of the Company&#146;s Construction Division in light of the previously disclosed consummation of the sale of most of the assets of the Construction Division. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Company intends to file its 10K as soon as practical, but no later than the expiration of the prescribed 15 day period on April&nbsp;16th, 2007. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">In its Form 12b-25 filing, the Company disclosed among other matters that based on its financial statements: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The Company currently expects revenues for its electronic security services segment to increase approximately $35.5 million for 2006. This increase is expected to
be offset by a decrease of approximately $4.1 million in revenues in the Company&#146;s Construction Division, which resulted primarily from decreases in both the number and size of construction contracts in the Bahamas and the US Virgin Islands.
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Revenues for the Company&#146;s Materials Division are expected to increase by approximately $2.6 million, due primarily to higher pricing for ready-mix cement on
the island of Sint. Maarten. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Gross profit is expected to increase due to growth in the Electronic Security and Materials Division, however, this will be offset by decreases in gross profit
generated by the Construction Division, after giving effect to the discontinued operations of the U.S. Virgin Islands, Antigua and Puerto Rico operations. </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The Company anticipates an increase in operating expenses of approximately $53.5 million, or 50.7% of anticipated total revenues for the fiscal year ended
December&nbsp;31, 2006, compared to $28.8 million, or approximately 40.1% of total revenues for the comparable year in 2005. The anticipated increases in operating expenses are mainly a result of amortization of customer contract and customer
relationship intangible assets related to electronic security services acquisitions, increased legal, accounting, and other advisory and consulting costs incurred with respect to such acquisitions and the sale of the Company&sup1;s Construction and
Materials operations. Additionally, included in the operating expenses for the fiscal year ended December&nbsp;31, 2006 is an impairment charge of approximately $2.8 million related to the sale of most of the assets of the Construction Division on
March&nbsp;20, 2007. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">For the full year ended December&nbsp;31, 2006, assuming total impairment charges of approximately $4 million, the Company anticipates recording a net loss from
continuing operations of approximately $32.1 million, compared to a net loss of $15.4 million during the comparable period in 2005, an increase of approximately $16.7 million. The anticipated increases in net loss are mainly a result of additional
interest expense of $18.2 million from the issuance and conversion of the $45 million note payable to preferred stock, and the increase in the revolving credit agreement, partially offset by $7.3 million of derivative income associated with the
issuance of the $45 million note payable, and an increase in the operating loss within the Electronic Security Services division of $6.6 million. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">The Company also anticipates reporting that, during the years ended December&nbsp;31, 2006 and 2005, the Company recognized income net of tax from discontinued
operations of $0.3 million and $1.1 million, respectively, as a result of the U.S. Virgin Islands Sale, Antigua Sale and Puerto Rico Sale. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B>About Devcon International </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Devcon has two operating divisions. The Security Division, (http://www.devcon-security.com) which provides
electronic security services to commercial and residential customers in selected markets, is the eleventh largest security monitoring and alarm company in the U.S. and the second largest in Florida. The Materials Division, which represents a small
portion of Devcon&#146;s business, produces and distributes crushed stone, ready-mix concrete and concrete block on St. Maarten in the Netherlands Antilles and on St. Martin in the French West Indies. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Forward-Looking Statements </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">This press release may contain statements, which
are not historical facts and are considered forward-looking statements within the meaning of the Private Securities </FONT>
</P>

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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">Litigation Reform Act of 1995. These forward-looking statements contain projections of Devcon&#146;s future results of operations, financial position or
state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. You
should not rely on forward-looking statements because Devcon&#146;s actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not
limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing
and future regulations effecting our business, and other risks and uncertainties discussed under the heading "Item 1A&#151;Risk Factors" in Devcon&#146;s Annual Report on Form 10-K for the period ended December&nbsp;31, 2005 as filed with the
Securities and Exchange Commission, and other reports Devcon files from time to time with the Securities and Exchange Commission. Devcon does not intend to and undertakes no duty to update the information contained in this press release. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">### </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">For More Information: Stan Smith (561)&nbsp;955-7300
or SSmith@RPCP.com </FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>6
<FILENAME>dex993.htm
<DESCRIPTION>NARRATIVE PORTIONS OF THE FORM 12B-25 FILED BY DEVCON CORP ON APRIL 3, 2007
<TEXT>
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<TITLE>Narrative portions of the Form 12b-25 filed by Devcon Corp on April 3, 2007</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 99.3 </B></FONT></P> <P STYLE="margin-top:10px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="3"><B>Narrative Portions of Form 12b-25 Filed By Devcon International Corp. on April&nbsp;3, 2007 </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Narrative Portion of
Part III of Form 12b-25 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, N-CSR or the transition report or
portion thereof, could not be filed within the prescribed time period. (Attach extra sheets if needed.) </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Registrant is not yet able to file its Annual
Report on Form 10-K for the fiscal year ended December 31, 2006 because the Registrant is experiencing delays in the collection and compilation of certain financial information required to be included in the Form 10-K, including, without limitation,
information relating to that certain Forbearance Agreement executed with holders of a majority of the outstanding shares of the Registrant&#146;s Series A Convertible Preferred Stock on March 30, 2007 and a review of the valuation and impairment of
certain assets of the Registrant&#146;s Construction Division in light of the previously disclosed consummation of the sale of most of the assets of the Construction Division. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">The reasons causing the inability to file timely could not be eliminated by the Registrant without unreasonable effort or expense. The Form 10-K will be filed as soon as reasonably practicable and in no event later
than the fifteenth calendar day following the prescribed due date. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Explanation Referred to in Part IV, Item(3) of Form 12b-25 </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Registrant believes that a significant change in the Registrant&#146;s results of operations between the corresponding period for the last fiscal year
will be reflected in the earnings statements to be included in the Form 10-K to which this notice applies due to changes in the relative size of the Registrant&#146;s segments of operations, certain financing arrangements the Registrant entered into
in 2006 and changes in operating activities included in Other Income and Expense. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On March&nbsp;2, 2006, the Registrant entered into that
certain Stock Purchase Agreement (the &#147;AMP Stock Purchase Agreement&#148;) with A. Hadeed or his nominee and Gary O&#146;Rourke (collectively, the &#147;AMP Purchasers&#148;), under which the Registrant completed the sale of all of the issued
and outstanding common shares of one of its subsidiaries, Antigua Masonry Products, Ltd., an Antigua corporation (&#147;AMP&#148;), to the AMP Purchasers. Under the AMP Stock Purchase Agreement, the AMP Purchasers acquired 493,051 common shares
(collectively, the &#147;AMP Shares&#148;) of AMP for a purchase price (the &#147;AMP Purchase Price&#148;) equal to $5.1 million, subject to certain adjustments. The AMP Purchase Price was paid entirely in cash. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On March&nbsp;6, 2006, the Registrant sold to certain accredited investors an aggregate principal amount of $45,000,000 of notes, along with warrants to
acquire an aggregate of 1,650,943 shares of the Registrant&#146;s common stock subject to certain caps based upon the Nasdaq Marketplace Rules. The issuance of the notes and the warrants was completed as an initial step to the private placement of
shares of 45,000 shares of the Registrant&#146;s Series A Convertible Preferred Stock, par value $.10 (the &#147;Series A Convertible Preferred Stock&#148;). The notes and warrants were issued to allow us to complete the Registrant&#146;s
acquisition of Guardian International, Inc. (&#147;Guardian&#148;), as described below, in a timely manner and avoid certain payments which would have been due to Guardian as a result of the Registrant&#146;s failure to do so, including forfeiture
of a $3 million deposit. Subsequently, on October&nbsp;20, 2006, the private placement investors received an aggregate of 45,000 shares of the Series A Convertible Preferred Stock in exchange for notes bearing an aggregate principal amount equal to
$45,000,000 and for no additional consideration. Accordingly, each share of this Series A Convertible Preferred Stock has a liquidation preference equal to $1,000. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">On March&nbsp;6, 2006, pursuant to the terms of that certain Agreement and Plan of Merger (the &#147;Merger Agreement&#148;), dated as of November&nbsp;9, 2005, the Registrant and Devcon Acquisition, Inc., an indirect
wholly-owned subsidiary of the Registrant, completed a merger (the &#147;Merger&#148;) in which the Registrant acquired all of the outstanding capital stock of Guardian, for an estimated aggregate cash purchase price (the &#147;Guardian Purchase
Price&#148;) of approximately $66.4 million. In connection with this acquisition, the Registrant increased its credit line (the &#147;Credit Line&#148;) from $70 million to $100 million under its revolving credit facility with CapitalSource Finance,
LLC (&#147;CapitalSource&#148;) and drew down an additional $35.6 million under the Credit Line. A portion of these proceeds were used to repay an $8 million bridge loan, which was issued in November, 2005, and the remainder of the Credit Line was
used for general corporate purposes, including working capital. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On June&nbsp;27, 2006, the Registrant sold its Boca Raton-based third
party monitoring operation which has operated under the name Central One and the associated Boca Raton monitoring center that it acquired from Coastal Security Systems in November 2005, which operations generated recurring monthly revenue of
approximately $0.4 million, to Lydia Security Monitoring, Inc., a New York corporation, operating under the name C.O.P.S. Monitoring, for $5.0 million in cash. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">On March&nbsp;21, 2007, the Registrant, completed the transactions contemplated by that certain Asset Purchase Agreement, dated as of March&nbsp;12, 2007 (the &#147;Construction Division Asset Purchase
Agreement&#148;), by and between the Registrant and BitMar Ltd., a Turks </FONT>
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<FONT FACE="Times New Roman" SIZE="2">and Caicos corporation and successor-in-interest to Tiger Oil, Inc., a Florida corporation (&#147;Construction Division Purchaser&#148;), consisting of the
sale of fixed assets, inventory and customer lists constituting a majority of the assets of the Registrant&#146;s construction division (the &#147;Construction Division&#148;), for approximately $5.3 million, subject to a holdback of $525,000 to be
retained for resolution of certain indemnification matters in the form of a non-negotiable promissory note bearing a term of 120 days. The Registrant retained working capital of $6.7 million, including approximately $2.1 million in notes receivable,
as of December&nbsp;31, 2006. As a result of the completion of the transactions contemplated by the Construction Division Asset Purchase Agreement, the Registrant determined on the closing date that it will recognize a loss from the sale in the
fourth quarter of 2006 in an amount equal to approximately $3.0 million, exclusive of any employee severance and other transaction-related expenses which will be recognized in the first quarter of 2007. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">On April 2, 2007, effective as of March&nbsp;30, 2007, the Registrant entered into certain Forbearance and Amendment Agreements (the &#147;Forbearance
Agreements&#148;) with each of certain institutional investors holding, in the aggregate, a majority of the Company&#146;s previously issued Series A Convertible Preferred Stock (the &#147;Required Holders&#148;). Under the terms of these
Forbearance Agreements, each of the Required Holders has agreed that for a period of time ending no later than January&nbsp;2, 2008, they shall each forbear from (a)&nbsp;taking any remedial action with respect to the Registrant&#146;s failure (the
&#147;Effectiveness Failure&#148;) to have declared effective by the United States Securities and Exchange Commission a registration statement registering the resale of the shares of the Registrant&#146;s common stock underlying the Series A
Convertible Preferred Stock and warrants issued in connection therewith as required by that certain Registration Rights Agreement, dated February&nbsp;20, 2005, by and between the Registrant, the Required Holders and the remaining holder of the
Series A Preferred Shares (the &#147;Registration Rights Agreement&#148;), (b)&nbsp;declaring the occurrence of any &#147;Triggering Event&#148; (as defined in the Certificate of Designations governing the terms of the Series A Convertible Preferred
Stock) with respect to the Effectiveness Failure and from delivering any Notice of Redemption at Option of Holder (as permitted by the Certificate of Designations) with respect thereto or (c)&nbsp;demanding any amounts due and payable with respect
to the Effectiveness Failure, including without limitation, any Registration Delay Payments. The Forbearance Agreements also contained agreements to amend the governing Certificate of Designations to revise certain terms of the Series A Convertible
Preferred Stock, including, without limitation, a reduction in the conversion price of the Series A Convertible Preferred Stock set forth in the Certificate of Designations to $6.75, allowance for the accrual of dividends on the Series A Convertible
Preferred Stock at a rate equal to 10%&nbsp;per annum, which dividends may be payable in kind, and a revision of the definition of the Leverage Ratio (as such term is defined in the Certificate of Designations), which revised definition provides for
the Leverage Ratio to be calculated as a multiple of recurring monthly revenue (&#147;RMR&#148;) as opposed to EBITDA and a revision of the Maximum Leverage Ratio covenant set forth in the Certificate of Designations to require such Maximum Leverage
Ratio to equal 38x RMR, commencing on June&nbsp;30, 2008. The parties to the Forbearance Agreement also agreed to allow dividends to accrue but not be payable until the expiration of the Forbearance Period. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Notwithstanding these Forbearance Agreements, on April 3, 2007, the third institutional investor, which holds shares of the Company&#146;s Series A
Convertible Preferred Stock, but was not a party to the Forbearance Agreements, transmitted a notice of redemption to the Company alleging the Company failed to timely pay certain Registration Delay Payments constituting a Triggering Event which
gave such investor the right to require the Company to redeem all shares of Series A Convertible Preferred Stock held by such investor. The Company disagrees that this investor has such redemption right and intends to vigorously contest any actions
taken by this investor to enforce such alleged right. The investor holds shares of the Company&#146;s Series A Convertible Preferred Stock with a face value equal to $7,000,000. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Revenue is expected to increase due to the fact that on February&nbsp;28, 2005,&nbsp;November&nbsp;10, 2005 and March&nbsp;6, 2006, the Registrant
acquired the operations of Starpoint Limited, a subsidiary of Adelphia Communications Corporation (the &#147;Adelphia Acquisition&#148;), Coastal Security Company (the &#147;Coastal Acquisition&#148;) and Guardian International, Inc. (the
&#147;Guardian Acquisition&#148;), respectively, which acquisitions (the &#147;Security Acquisitions&#148;) significantly increased the size of the Registrant&#146;s Electronic Security Services Division. The Registrant believes the increase in
revenues from this division will be an amount equal to approximately $35.5 million. The Registrant anticipates that this increase in electronic security services revenue was offset by a decrease of approximately $4.1 million in revenues generated by
the Registrant&#146;s Construction Division, which decrease primarily resulted from decreases in both the number and size of construction contracts obtained by the Registrant in the Bahamas and the US Virgin Islands. The Registrant also anticipates
that the Registrant&#146;s revenues from its Materials Division will increase by approximately $2.6 million due primarily to higher pricing for ready-mix cement on the island of Sint. Maarten. The Registrant&#146;s U.S. Virgin Islands, Antigua and
Puerto Rico ready-mix concrete, aggregates, concrete block and cement materials and supplies business, which operations were sold by the Registrant on September&nbsp;30, 2005 (the &#147;U.S. Virgin Islands Sale&#148;), March&nbsp;2, 2006 (the
&#147;Antigua Sale&#148;) and May&nbsp;2, 2006 (the &#147;Puerto Rico Sale&#148;), are now reported as discontinued operations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Gross
profit on revenue is expected to increase due to growth in the security and materials segments, offset by decreases in gross profit generated by the Construction Division, after giving effect to the discontinued operations of the U.S. Virgin
Islands, Antigua and Puerto Rico operations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, the Registrant anticipates operating expenses will increase, both as a
percentage of revenue and in absolute dollars. Specifically, the Registrant anticipates that operating expenses will be $53.5 million, or approximately 50.7% of anticipated total </FONT>
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<FONT FACE="Times New Roman" SIZE="2">revenues for the fiscal year ended December&nbsp;31, 2006, as compared to $28.8 million, or approximately 40.1% of total revenues for the comparable year in
2005. The anticipated increases in operating expenses are mainly a result of amortization of customer contract and customer relationship intangible assets related to the Security Acquisitions, increased legal, accounting, and other advisory and
consulting costs incurred with respect to the Security Acquisitions and the sale of the Registrant&#146;s construction and materials operations, Additionally, included in the operating expenses for the fiscal year ended December&nbsp;31, 2006 is an
impairment charge of approximately $2.8 million related to the sale of most of the assets of the Construction Division on March&nbsp;20, 2007. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">As a result of the foregoing, for the fiscal year ended December&nbsp;31, 2006, assuming total impairment charges of approximately $4 million, the Registrant anticipates recording a net loss from continuing operations of approximately $32.1
million, compared to a net loss of $15.4 million during the comparable period in 2005, an increase of approximately $16.7 million. The anticipated increases in net loss are mainly a result of additional interest expense of $18.2 million from the
issuance and conversion of the $45 million note payable to preferred stock, and the increase in the revolving credit agreement, partially offset by $7.3 million of derivative income associated with the issuance of the $45 million note payable, and
an increase in the operating loss within the Electronic Security Services Division of $6.6 million. The Registrant also anticipates reporting that, during the years ended December&nbsp;31, 2006 and 2005, the Registrant recognized income net of tax
from discontinued operations of $0.3 million and $1.1 million, respectively as a result of the U.S. Virgin Islands Sale, Antigua Sale and Puerto Rico Sale. </FONT></P>
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